Erase Debt by Selling Your Structured Payments

Lump sum lottery winnings

Playing the lottery is currently the most popular and widely practiced form of gambling in the United States. Maybe you buy a scratch off from time to time or maybe you are an avid power ball player. Whatever your game may be you need to be aware of what your options are when you win big. Many people don’t know that lottery winnings are not paid out in a lump sum as they are typically advertised. Instead, the lucky winner receives lottery winnings in a monthly payout for up to several years in a process known as a fixed annuity. As you can probably tell that isn’t what a big winner wants to hear. Selling fixed annuities is an option many winners are choosing so that they can actually get a lottery lump sum payout. Here are a few things people do after selling fixed annuities:

1. Pay Off Huge Debts – In February 2015 alone there was a daily average of 3,422 bankruptcy filings in the United States. That statistic is absolutely indicative of how many Americans are struggling financially. Selling fixed annuities in order to get a lump sum payout is a way to end your struggle with debt. Whether you are behind on your mortgage or drowning in credit card or medical debt, you can use your lump sum lottery winnings to get rid of it for good.

2. Invest – Often times individuals who choose to sell annuity payments will discuss their options with a financial adviser who can guide them. Financial advisers will sometimes recommend putting the money into certain types of bank accounts so that it is protected and grows interest, and others will recommend investing the money. Although investing your money is a risk, there are experts available who can give you their educated opinion on how to grow your money.

3. Travel – Do you have a certain country that you’ve always wanted to visit, but didn’t have the funds? If you decide to sell your fixed annuity payments and receive a lump sump payment for your lottery winnings this can be your chance! You may not win enough to quit your job forever, but with the right money management you can afford a great trip for a couple of weeks or longer and finally see parts of the world you’ve always dreamed about.

The average American adult owes nearly $4,000 in revolving credit to lenders right now. Don’t be a part of that statistic. If you win the lottery don’t settle for a fixed annuity that will only give you a small amount each month. Sell your structured settlements and get the money you deserve.

What to Consider About Lump Sum Lottery Payouts

Selling an annuity settlement

Everyone wishes for a little bit of luck every once in a while. Even though many people may hope that traffic isn’t too bad on their way to work, or that class will get canceled the next day, some aim a little higher. Considering the massive amounts of debt that are facing citizens in the United States, hoping for a pile of money to drop in your lap is not uncommon. Fortunately, the lottery offers the chance for people to do just that.

The lottery is the most widely spread and used form of gambling in America. The easy and cheap cost of entry is affordable enough for anyone to enter. To do so, one must simply travel to the nearest gas station or convenience store and jot down their lucky numbers. From there on, it’s just a matter of waiting.

For those lucky few who do find themselves sitting in a pile of lump sum lottery winnings, there is still work involved in receiving the money. The problem that lottery winners face, is the enormous taxes that coincide with lottery winnings. The government can withhold up to 25% of lottery jackpot winnings, which is a substantial chunk of change from a multi-million dollar prize.

There are essentially two ways to handle an individual’s winnings. They can choose an annuity, or just a lump sum lottery payout. An annuity settlement allows the winner to receive fixed sums of money every year, rather than all at once which will accrue higher taxes. The Mega Millions for example offers a version of lottery annuity wherein they pay the winner one immediate payment, which is then followed by 29 annual payments; each payment is 5% larger than the previous one.

The choice between an annuity or a lump sum lottery payout can be difficult to make in the heat of the moment. Having all of the money at once is tempting, but overall you will receive more from structured settlement annuity payments. If it’s any indication of how large of an impact this can have, consider that about 48% of lotto winners still work after they’ve won.

Take time to weigh your options before taking the lump sum lottery payout. It could mean the difference between working and sitting on a beach for the rest of your life.

Three Well-Kept Secrets to Successfully Selling an Annuity

Buy structured settlements

So you’ve received a structured settlement in the form of an annuity. Now what?

An increasingly popular option for people who have won structured settlements is to sell these annuity settlements in exchange for a lump sum, or the total amount of money awarded in the settlement. If you need your annuity money now, it might be your best option to sell this annuity, as early withdrawals from your annuity find can come with a 10% penalty.

But if you’ve tried to look into selling annuities, the process might seem complex, even labyrinthine in nature.

Selling your annuity settlement in exchange for a lump sum doesn’t have to be impossible — or even challenging. Here are three of the best-kept secrets to selling fixed annuities that will help you sell your annuity in no time:

Determine if your annuity is sellable

It’s important to understand that not every annuity is sellable. For example, if your annuity is a structured settlement, you may have to obtain a judge’s approval before you can sell these structured settlement payments for a lump sum, as some states have passed a Structured Settlement Protection Act to protect consumers just like you. It’s also a good idea to determine the resell value of your annuity before searching for buyers.

Don’t say yes to the first offer you receive

While it can be tempting to sell off your annuity to the first buyer you find, it’s better to wait until you’ve met with a reputable annuity buyer who will work with you every step of the way and give you the best offer possible. Understand that no matter what buyer you choose, you won’t receive the full value of your annuity — these buyers need to earn a living somehow.

Understand what form of payment works best for you

When it comes to selling an annuity, there are a variety of different purchasing plans from you to choose from. The straight purchase, partial purchase, split purchases and reverse purchases are all very different options for selling annuities. Determine which of these would work best for you before selling off your settlement.

Have any other questions or comments on how to sell annuity payments? Let us know by simply leaving a comment below this article.